Freshworks Inc Class A

Freshworks posted a clean beat on both the top and bottom lines in the second quarter of 2024, with revenue climbing 20% year-over-year to $174.13 million against a consensus estimate of $169.01 million, while non-GAAP diluted EPS of $0.08 cleared the $0.06 analyst estimate by 33.33%. The standout driver behind the quarter was the June 6 completion of the Device42 acquisition, which bolstered Freshworks' IT Asset Management capabilities and signals a deliberate push into mid-market and enterprise accounts. Profitability also improved meaningfully, as the company's GAAP net loss narrowed to $20.18 million from $35.66 million a year ago, and CEO Dennis Woodside pointed to a 19% free cash flow margin as evidence of tightening financial discipline. Customer momentum held steady, with accounts contributing more than $5,000 in ARR growing 14% year-over-year to 21,744. Looking ahead, Freshworks guided Q3 revenue to $180.00 to $183.00 million and reaffirmed full-year 2024 revenue of $707.00 to $713.00 million, reflecting continued confidence in its AI-driven product portfolio.